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THE RELATIONSHIP BETWEEN 360 DEGREE FEEDBACKS AND LEADERSHIP DEVELOPMENT
By
SUHAILA MOHD NAZER 810985
Thesis Submitted to
Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia,
in Fulfillment of the Requirements for the Degree of Master of Human Resource Management
PERMISSION TO USE
In presenting this project paper in partial fulfilment of the requirements for a Post Graduate degree from Universiti Utara Malaysia (UUM), I agree that the library of this university may take it freely available for inspection. I further agree that permission for copying this project paper in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor or in their absence, by the Assistance Vice Chancellor of the College of Business where I did my project paper.
It is understood that any copying or publication or use of this project paper or parts of it for financial gain shall be not allowed without my written permission. It is also understood that due recognition shall be given to me and to the Universiti Utara Malaysia (UUM) in any scholarly use which may be made of any material in my project paper.
Request for permission to copy or to make other use of materials in this project paper in whole or in part should be address to:
Assistant Vice Chancellor College of Business Universiti Utara Malaysia 06010 Sintok
Kedah Darul Aman
ABSTRACT
The characteristic of a good leader is one of the important factors in ensuring a company's goals and vision. Accordingly, Petra Energy Berhad also seriously looks into leadership development in the organization. Furthermore, various types of human resource management issues such as high turnover rate and high number of people to retirement contributed to the desolation quality corporate leaders.
Recognizing the problem, Petra Energy Berhad has selected 360 degree feedback as a tool in determining the sustainability leadership development in this company.
Therefore, this study was conducted to identify the relationship between a 360- degree feedback and leadership development. This is quantitative research and utilizes questionnaires as a method of collecting data on 120 people in Petra Energy officials directly involved in the use of 360 degree feedback as their leadership development. The results showed that the use of 360-degree feedback related to the development of the quality characteristics of the leader in Petra Energy Berhad. The results of this study also made proposals to strengthen the implementation of 360- degree feedback as a tool in shaping the characteristics of quality leaders.
Keywords: 360 degree Feedback, leadership development, turnover rate
ABSTRAK
Ciri-ciri pemimpin yang bagus merupakan salah satu faktor penting dalam memastikan sesebuah syarikat mencapai matlamat dan visi mereka. Sehubungan dengan itu, Petra Energy Berhad juga memandang serius kepada pembangunan pemimpin dalam organisasinya. Tambahan pula, pelbagai jenis masalah pengurusan sumber manusia seperti kadar lantik henti yang tinggi dan bilangan persaraan yang ramai menjadi penyumbang kepada ketandusan kualiti pemimpin syarikat.
Menyedari masalah tersebut, Petra Energy Berhad telah memilih 360 degree feedback sebagai alat dalam menentukan kelangsungan pembangunan pemimpin di syarikat ini. Oleh itu, kajian ini dijalankan bagi mengenalpasti hubungan antara 360 degree feedback dengan pembangunan pemimpin. Kajian ini berbentuk kuantitatif dan menggunakan soal selidik sebagai alat pengumpulan data kepada 120 orang pegawai di Petra Energy yang terlibat secara langsung dalam menggunakan 360 degree feedback sebgai pembangunan kepimpinan mereka. Hasil kajian menunjukkan bahawa bahawa penggunaan 360 degree feedback mempunyai hubungan ke atas pembangunan ciri-ciri kualiti pemimpin di Petra Energy Berhad.
Hasil kajian ini juga telah mengemukakan cadangan bagi memantapkan lagi perlaksanaan 360 degree feedback sebagai alat dalam membentuk cirri-ciri kualiti pemimpin.
Kata kunci: 360 degree Feedback pembangunan pemimpin, kadar lantik henti
ACKNOWLEDGEMENT
First and foremost, I would like thanks to ALLAH for all the guidance and power that given to me to complete this project paper as required for the completion of my graduate study at Universiti Utara Malaysia.
My hearts thanks are due to a few special people for their wisdom, effort and time in making this project paper possible. I am most indebted to my supervisor, Dr Mohd Faizal bin Mohd Isa for his guidance and advice in preparation of this project paper.
Thanks also to my Director, Group Human Capital, Puan Badariah Abd Jalil for her support and trust to me to roll-out 360-degree for Petra Energy Berhad, oil and Gas Industry and allow me to use this project as case study for my project paper.
Besides that, I would like to express my greatest appreciation and love to my family especially to my lovely husband IR Haris Hashim, my kids Hazqil, Lia Saffura and Liana Sofea and my parents Mohd Nazer Che Nah and Siti Haminah Ahmad, my young sister and her husband, Siti Hajar and Razif for their endless support and understanding in facing difficulty and challenges of the study. My appreciation also goes to my best friends who help me to prepare this project paper.
TABLE OF CONTENTS
PERMISSION TO USE ... i
ABSTRACT ... ii
ABSTRAK ... iii
ACKNOWLEDGEMENT ... v
TABLE OF CONTENTS ... vi
LIST OF TABLES ... x
LIST OF FIGURES ... xi
CHAPTER 1 INTRODUCTION ... 1
1.1 Introduction ... 1
1.2 Background of the study ... 3
1.3 Problem Statement ... 9
1.4 Research Question ... 16
1.5 Research Objectives ... 16
1.6 Significance of the Study ... 17
1.7 Scope of the Study ... 17
1.8 Organization of the Thesis ... 18
CHAPTER 2 LITERATURE REVIEW ... 20
2.1 Introduction ... 20
2.2 Leadership Development ... 20
2.3 360 Degree Process and Part to Contribute for Leadership Development .. 22
2.3.1 Individual Reaction and Acceptance on 360 Degree Feedback ... 25
2.3.2 360 Degree Effectiveness to Support Leadership Development... 26
2.4 Previous Research Finding ... 28
2.5 Hypotheses ... 29
2.6 Chapter Summary ... 30
CHAPTER 3 METHODOLOGY ... 31
3.1 Introduction ... 31
3.2 Research Framework ... 31
3.3 Research Design ... 32
3.4 Unit of Analysis ... 33
3.5 Population and Sampling design ... 34
3.5.1 Population ... 34
3.5.2 Sample ... 34
3.5.3 Sampling technique ... 35
3.6 Structure of the Questionnaire, Operational definition and Measures ... 36
3.6.1 Leadership Development ... 37
3.6.2 Employees feedback on 360 degree feedback ... 39
3.6.3 Employees acceptance of 360 degree feedback ... 41
3.6.4 Employees satisfaction on 360 degree feedback ... 42
3.7 Procedure for Data Collection ... 43
3.8 Techniques for Data Analysis ... 44
3.8.1 Data Screening / cleaning... 44
3.8.2 Descriptive Statistic ... 45
3.8.3 Inferential Statistics ... 45
3.8.4 Pearson Correlation Coefficient ... 45
3.8.5 Multiple Regression Analysis ... 46
3.9 Pilot Test ... 47
3.10 Chapter Summary ... 48
CHAPTER 4 RESULT ... 49
4.1 Introduction ... 49
4.2 Response Rate ... 50
4.3 Data Screening And Cleaning ... 51
4.3.1 Treatments of outliers ... 51
4.3.2 Normality test ... 51
4.3.3 The Reliability Analysis ... 54
4.4 Descriptive Analysis ... 55
4.5 Factor Analysis ... 57
4.6 Hypotheses Testing ... 61
4.6.1 Correlation Analysis Test ... 61
4.6.2 Multiple Regression Analysis ... 62
4.7 Hypotheses Decision ... 64
4.8 Chapter Summary ... 65
CHAPTER 5 DISCUSSION AND CONCLUSION... 66
5.1 Introduction ... 66
5.2 Summary of the Results ... 66
5.3 Discussion ... 67
5.3.1 The relationship between employee’s feedback to 360 degree feedback and leadership development... 67
5.3.2 The relationship between employee’s acceptance of 360 degree and leadership development ... 69
5.3.3 The Relationship between Employee’s Satisfaction With The 360- Degree and Leadership Development. ... 71
5.4 Implication of the study ... 73
5.4.1 Knowledge contribution ... 73
5.4.2 Managerial Implication ... 73
5.5 Limitation of study ... 75
5.6 Suggestion for Future Study ... 76
5.7 Conclusion ... 76
REFERENCES ... 77
APPENDICES ... 84 APPENDIX A: SAMPLE OF QUESTIONAIRE ... 84 APPENDIX B: SAMPLE STATEMENT OF ANONYMITY ... 102 APPENDIX C: LETTER TO GET PERMISSION FOR DATA COLLECTION .. 103
LIST OF TABLES
Table 1.1: Total Employees for Manager and above by Category at Petra Energy
Berhad ... 6
Table 1.2: Total employees left Petra Enery Berhad for the year 2013 by Age and Year Of Service. ... 7
Table 3.1: Leadership Development ... 38
Table 3.2:Employees feedback on 360 degree feedback ... 39
Table 3.3: Employees acceptance of 360 degree feedback ... 41
Table 3.4: Employees satisfaction on 360 degree feedback ... 42
Table 3.5: Reliability for Pilot Test... 48
Table 4.1: Response Rate of the Questionnaires ... 50
Table 4.2: Reliability Analysis ... 54
Table 4.3: Personal Demographic ... 56
Table 4.4: No of employees reporting to subject ... 57
Table 4.5: KMO and Bartlett’s Test ... 58
Table 4.6: Rotated Component Matrix... 60
Table 4.7: Correlation Analysis Summary between Variables ... 62
Table 4.8: Model Summary... 63
Table 4.9: ANOVA ... 63
Table 4.10: Coefficients ... 64
Table 4.11: Summary of the Hypothesis Testing ... 64
LIST OF FIGURES
Figure 1.1: Corporate Structure for Petra Energy Berhad... 3
Figure 1.2 : Petra Energy Vessels name Petra Discovery ... 4
Figure 1.3: Talent Management and Succession Planning Framework at Petra Energy Berhad ... 8
Figure 1.4: Employee Information (EI) from CEO to Talent Pool on 360 Degree Implementation at Petra Energy Berhad ... 8
Figure 1.5: Sample of Readiness Report for one of Talent at Petra Energy Berhad.... 9
Figure 2.1: Sample of 360 Degree Questionnaire (Cat, 1998, p.2) ... 23
Figure 2.2 : 360- Degree Feedback Stakeholder (Peter,1997, p.5) ... 24
Figure 2.3 : 360- Degree Process (Peter,1997, p.20) ... 24
Figure 2.4 : Coaching – Era of leadership (Al Bolea and Leanne, 2015, p.255) ... 28
Figure 3.1: Research Framework ... 32
Figure 3.2: Confidence Interval Percentage ... 35
Figure 3.3: Example of Correlation Coefficient pg: 452 ... 46
Figure 4.1: The Normality of Item in Employee’s Feedback on 360 degree feedback ... 52
Figure 4.2: The Normality of Item in Employee’s acceptance on 360 degree feedback ... 53
Figure 4.3: The Normality of Item in Employee’s satisfaction on 360 degree feedback ... 53
Figure 5.1: Implementation timeline of 360 degree feedback exercise at Petra Energy Berhad. ... 68
Figure 5.2: Competencies Summary for 360 degree feedback participants. ... 70
Figure 5.3: Training Effectiveness Evaluation Form (Immediate Superior) ... 72
CHAPTER 1 INTRODUCTION
1.1 Introduction
“There has probably never been a time in the world’s history when leadership development has been more critical to organisations”
(Martineau, Hoole and Patterson 2009, p47) Nowdays many organizations are investing in Leadership Development even though it is costly. Fulmer and Goldsmith (2001) stated that Hewlet-Packard, Johnson &
Johnson, Shell and World Bank had spent about US60.7 billion on Training and Leadership Development in 1998, and US65 billion in 1999. According to Hubbard (2005) by year 2000, the training in USA reached a record high of 2 percent of payroll whereby its about $820 per employee. In addition, Krause and Wilson (2012) found that American organizations had US40 billion per year on leadership development.
Leadership development is a continuous process to expand the learning and performance capacity of people in the organization and communities to meet shared goals and objective (Allen and Kusy, 2011). Lawson (2008) also claimed that leadership development is a structured process that provides individuals with the opportunities, training and experience to become effective leaders. Companies with a strong leadership development programs will outperform the competitors and exceed business goals as compared to organizations without Learning and development.
According to Lawson (2008), organizations which did not practise leadership
The contents of the thesis is for
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